All of the following are necessary conditions for an efficient market EXCEPT
A) low trading or transaction costs.
B) many buyers and sellers.
C) free and readily available information to market participants.
D) low stock prices.

Question

Quizplus · Accepted Answer

In an efficient market, the key conditions include low trading or transaction costs, many buyers and sellers, and free and readily available information to all participants. These conditions ensure that asset prices fully reflect all available information. However, the level of stock prices (high or low) is not a condition for market efficiency; rather, it's important that prices accurately reflect all available information, regardless of their level.

All of the Following Are Necessary Conditions for an Efficient